Revamped Fonterra to be ‘more capital-efficient’
Fonterra chair Peter McBride says the divestment of Mainland Group is their last significant asset sale and signals the end of structural changes.
Speaking to Dairy News after taking part in six farmer meetings between Northland and Waikato, Spaans said farmers recognise the better processes and outcomes proposed by the review.
He says the proposed cut in director numbers from 13 to 11 was barely raised at the meetings he attended.
"There were one or two questions on why couldn't we keep it at 13; one or two raised the possibility of reducing the number further," he says.
"We explained [the numbers were needed because] of our unique regulatory requirements like the milk price panel and the general workload of directors."
Spaans was joined at the meetings by Fonterra Shareholders Council deputy chairman Greg Kirkwood. On average 30 farmers attended each meeting.
Spaans says while many farmers lacked time to think about the proposal, mailed out on April 13, lots asked questions and gave feedback.
The review committee will discuss the feedback before putting a proposal to the Fonterra board and the Shareholders Council. A final proposal could be put to farmers for voting in late May, Spaans says.
"If we pursue those changes we will need 75% support at a special meeting and that is a big hurdle."
Former Shareholders Council chairman Ian Brown, who held farmer meetings in Southland and Otago, refers to "good questions" on the board numbers and composition.
But he says the proposal to strengthen the current skills matrix to introduce attributes and assess candidates attracted the most interest among shareholders.
Brown says overall there was support for evolving the governance and representation of the co-op from "where we are today".
Also attending the meetings was John Monaghan, standing in for chairman John Wilson, in China on the Prime Minister's trade delegation. Brown says Monaghan's presence was a great example of the varied workload of directors.
Proposed changes
• 11 directors with at least six farmer directors
• Change eligibility rules to allow for modern farm ownership structures
• Use of matrix to assess board candidates
• Move away from single transferrable vote
• 100% independent assessment of candidates
• Better information to farmers during voting of directors.
